OTCPK:SMMCF - Post Discussion
Post by
CanSiamCyp on Aug 15, 2020 11:03am
BMO analyst update
SMU.UN-TSX Rating: Outperform
Price: Aug-14: $12.06
Target: $13.75
Total Rtn: 18%
Raising Price Target to Reflect Solid Outlook
Bottom Line: We have raised our price target to $13.75 from $11.75/unit. Our target
price equals a +15% premium to NAV which we believe is justified by the REIT’s sizable
concentration to the GTA industrial market (~50% of GLA). Despite the COVID-19
pandemic, fundamentals remain solid in both the GTA and Montreal. We expect rents to
rise in both markets (we estimate that market rents in the GTA are at least ~10% above
in-place -> renewals this year have been at an average spread of +21.5%).
BMO Estimates in C$
(FY- Dec .) 2018A 2019A 2020E 2021E
FFO/Unit $0.56 $0.58 $0.65 $0.67
AFFO/Unit $0.48 $0.50 $0.56 $0.57
Distributions $0.52 $0.53 $0.54 $0.54
AFFO Payout % 108.3% 106.0% 96.4% 94.7%
EBITDA (mm) $60 $97 $133 $145
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